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The Spreading Use of Digital Cash and Its Problems
Abstract
It has been several years since the words “digital cash” and other related terms were introduced. Although e-commerce has been growing, digital cash has not been a focus of much attention. Digital cash has some problems associated with it that need to be solved before its use can continue to grow. There are two points the author emphasizes in this chapter. The first is that the essential characteristics of digital cash, its advantages and disadvantages, should be carefully examined. The second point is since financial institutions cannot stop this trend, it would be prudent for them to view it as a business opportunity. Monetary authorities should pay careful heed to the trend as well, guiding the “sound” market to maturity, taking care not to exercise excessive intervention.
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